Red Hat delivered solid third quarter results that topped Wall Street expectations.
The open source giant reported third quarter earnings of $38.2 million, or 19 cents a share, on revenue of $290 million, up 23 percent from a year ago. Non-GAAP earnings were 28 cents a share in the third quarter. The company is expected to report third quarter earnings of 26 cents a share on revenue of $289.6 million.
Subscription revenue in the third quarter was $246.5 million, said Red Hat.
In a statement, Red Hat CEO Jim Whitehurst said the company is enjoying strong demand and market share gains. Whitehurst said:
Red Hat continues to benefit from enterprise customers that are seeking to leverage their IT infrastructure to drive significant productivity gains and agility across their organizations.
Red Hat delivered deferred revenue of $819.6 million, up 20 percent from a year ago. Cash, cash equivalents and investments was $1.2 billion.
As for the outlook, Red Hat projected fourth quarter non-GAAP earnings of 26 cents a share to 27 cents a share. Sales for the fourth quarter will be $289 million to $292 million. Wall Street was looking for non-GAAP earnings of 26 cents a share on revenue of $292.5 million.
Among the key points on Red Hat’s conference call:
- Whitehurst said that the Gluster acquisition is integrated. “The Gluster technology has me excited. It is a software solution for solving the scale out storage problem and fits well with our cloud vision of being able to deploy applications anywhere. It’s already used by companies like Pandora and lime light for their unstructured data needs. Because the IT landscape is changing, storage architectures are changing too,” said Whitehurst.
- Red Hat renewed 25 out of 25 deals in the quarter at a value of 130% of the original value.
- In terms of geography, 60 percent of the bookings came from the Americas, 24 percent from EMEA, and 16 percent from Asia-Pacific.
